PKR gains big against dollar post general elections

The Pakistani rupee (PKR) strengthened against the dollar as a result of measures taken by the State Bank of Pakistan (SBP), as uncertainty around the general elections dissolves.

At interbank on Saturday, the rupee lost 30 paisas in terms of the dollar for buying and selling at 128 and Rs 128.20. It was trade lower at the open market as Rs 122.5-124.50 well below the interbank rate. Since Monday, the dollar has lost Rs 8.

According to local media reports, the recent recovery in the value of the rupee against dollar was due to the measures taken by the SBP, said Forex Association of Pakistan (FAP) president Malik Bostan. The absence of illegal money changers also played a role he said.

Earlier, a notification by the central bank directed dealers to transfer dollars only through proper banking channels with effect from July 24. It also restricted intercity cash movement by the exchange companies.

The SBP has warned that failure to comply with these instructions will attract regulatory and legal action under the relevant provisions of Foreign Exchange Regulation Act, 1947.